The series of events after the BSV halving took place similar to that of BCH, loyalists turning their backs on the network







Since being created in late 2018, BSV has experienced its first halving event, hours after BCH has also been completed. BSV came about due to disagreements among the opposing factions in the BCH community, resulting in a group backed by the self-proclaimed Bitcoin creator, Craig Wright and billionaire Calvin Ayre who forked this chain to create Bitcoin SV.


btc-bsv-bch


As in the case of BCH, BSV has also seen a drop in hash rates as mining companies shift their computing power to the BTC chain, which is currently bring The highest returns for all three blockchains. BSV proponents say reducing the hash rate is only a temporary trend and will more or less negatively impact miner's revenue.


In the hash war between BCH and BSV, the concentration of computing power in those two chains almost led to a mining spiral for Bitcoin. This period is also the last stage of the bear market in 2018, with BTC prices hitting a bottom of $ 3,800 in December 2018.


Once both the BCH and BSV halving events have been completed, attention is now shifted to reducing BTC block subsidies, which are expected to take place in mid-May. With the migration of mining companies on the blockchains during this halving event, the consequence of Bitcoin's 50% inflation reduction could give a clearer picture of the hash rate distribution for the three chains.


In terms of price, the BSV and BCH halving event happened at the same time as the downtrend of all three cryptocurrencies. Bitcoin has plunged below $ 7,000 after failing to pass $ 7,500 in a fifth attempt since Black Thursday on March 12, when the price plummeted to $ 3,800.



Price BSV. Source: Coinmarketcap


BCH has seen a quick pullback after the halving event, down 11% after the event. As of the time of writing, BSV has dropped by more than 15% after the event, and halving does not trigger any upward momentum in its price action.


BSV in the middle


While BSV is the latest coin to complete halving, its halving event took place between BCH and BTC. The reduction in block subsidies to BCH occurred a month before the BTC due to changes in difficulty adjustment algorithms in 2017. As a BCH fork, Bitcoin SV inherited faster block creation time than artifacts in its blockchain. after splitting in 2018.


The halving event causes the reward generated by each block to be reduced by 50%. This event happens every 210,000 blocks or every four years and is an inflation control protocol encrypted into the Bitcoin Blockchain and, both BCH and BSV. This four-year inflation reduction helps regulate token supply by slowing down the production of new coins. Without such controls, theoretically, miners can get all the block rewards in a very short time.


Such a scenario would show that supply far exceeds demand, potentially causing the price of coins to collapse. The limited supply of 21 million tokens and inflation control calendar serves for Bitcoin as a "hard money" - a currency immune to inflation - which is the term for gold-backed currencies. .


Decreasing hash rate after halving events: such as BCH, BSV


On April 10, the 630,000th block appeared on the Bitcoin SV blockchain. An unknown mining team processed important transactions. This milestone triggered the halving event which reduced the block reward from 12.5 BSV to 6.25 BSV. ViaBTC is the first group to mine a block under the new regime about 30 minutes later.


Before the BSV halving event took place, Jimmy Nguyen, president of Bitcoin Association and former CEO of nChain, had declare that halving will act as a watershed event for Bitcoin SV.


The aftermath of the Bitcoin SV halving event also saw a sharp drop in the hash rate similar to the case of Bitcoin Cash. After the halving BCH event, the computing power for the BSV chain increased to about 3.01 exahash per second.


However, as of the time of writing, data from blockchain discovery platform Blockchair.com shows that the BSV hash rate is 0.98 EH / s, which means the hashs rate reduction more than 50% since halving. The difficulty of mining BSV has also been adjusted, causing the hash rate to drop more than 35%.


Almost all roads are directed to BTC, at least for now


According to data from Coin Dance, the BTC chain currently controls 98.7% of the distribution of the hash rate among all three blockchains. The mass migration of miners from both BCH and BSV has led to a significant decrease in the proportion of the total hash rate controlled by the fork.


In a conversation, Connor Murray, a BSV proponent and host of the Bitcoin and Beyond podcast, argued that the BCH and BSV halving event was not important. According to Murray, the May BTC halving event will determine the future fate of the three chains.


For Murray, reducing the hash rate does not greatly affect the value proposition of BSV. With the halving event completed, the owner of the cryptocurrency podcast commented that BSV is still in the process of achieving its development goals. He added that "BSV developers and entrepreneurs have been preparing for the halving event for years." Bitcoin SV developer Daniel Connolly echoed the same views, saying:


Halving reduces the subsidy for block transactions. The cost of mining a block has not changed. When reducing subsidies, there are two options: increase the cost of confirming transactions or increase the number of transactions confirmed in a block. BSV is only positioned to increase the number of transactions in a block while maintaining low transaction fees and mining revenue. ”


For Alex Speirs, communications director of the Bitcoin Association, the current mining reward model only exists for a short time, with transaction fees being the main driver for mining companies when subsidies are exhausted.


According to Speirs, the unlimited block size used in the Bitcoin SV blockchain constitutes a more honest implementation of Satoshi Nakamoto's original plan for Bitcoin. ” In addition:


“We are confident that with the increasing volume of transactions on the Bitcoin SV network (...) the transaction processor (miner) will be encouraged to remain on the Bitcoin SV network by earning an increasing percentage of revenue from Their revenue from transaction fees is increasing. ”



Concerned about the network


With the mining migration after the BCH halving event, fear arose about a 51% attack that could occur on the blockchain. A phishing attacker would only need about $ 10,000 of hash power to be hired to perform an attack.


A similar situation has occurred with BSV. As shown by data from Crypto51, a server monitoring platform theoretically about 51% attacks on proof-of-work blockchains like BSV, a fraudster can attack the chain for an hour at a cost. fee is lower than current Bitcoin price.


For Mason Jang, chief strategy officer at blockchain analysis firm CryptoQuant, BSV mining stakeholders like Coingeek will continue to use computing power for the Bitcoin SV chain.


Staying away from the immediate consequences of the halving event, proponents like Murray say that Bitcoin SV stakeholders are focusing on planned economic innovations on the chain.


“There are many entrepreneurs and developers in the‘ blockchain ’industry that see utility in a transparent global ledger, but are building on ledgers that don't have a global use scale. BSV has shown that Bitcoin always intends to scale to handle billions of transactions every day. ”


Trinh Nguyen


According to Cointelegraph








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